UT Holdings and UT Logistics Sued Over Unpaid Loan

UT Holdings and UT Logistics, have been sued by receivers of the bank, PricewaterhouseCoopers (PwC) for non-payment of some loans acquired before the collapse of the bank.

According to the suit before an Accra High Court, an amount of GHc51 million and US$8 million respectively, were invested into UT holdings before its collapse.

Furthermore, PwC in its writ also complained that UT Logistics has refused to pay a GHc9 million loan balancer “which remains outstanding and unpaid till date.”

PwC is, therefore, asking the court to order both companies to refund the money with the necessary interest.

UT Bank is among seven local banks that collapsed after they were unable to pay debts in the country in the last 12 months.

UT Holdings is the parent company of UT Bank. UT Logistics also have the same owners and were a beneficiary of some GHS 9.31 million from the defunct bank.

UT Logistics has been named as the second defendant to the suit. The defendants will pay the loans with interest if the court grants the application of the plaintiff.

The plaintiff was appointed as the Receiver of the collapsed bank in 2017. During that time PwC said it found the suit filed at the Commercial Division of the Accra High Court, as the last resort towards recovering the debt.

The Bank of Ghana (BoG) revoked the licence of UT Bank and was subsequently taken over by GCB Bank after having been declared “irredeemably insolvent”.